“Rule of Law” is both a play on my name, and a statement of my values. The rule of law is a foundation for both our liberties and for order. The rule of law respects us as equals. It allows us to organize our lives, plan our futures, and resolve disputes in a rational way. There are those around the world and throughout history who have fought in great struggles for the rule of law. My role is more modest. I am a lawyer at the law firm of Sabey Rule LLP who works with people, assisting them with estate planning, probate and estate administration. I also assist people in resolving disputes about wills and estates. In this blog, I write about some of the legal topics that I deal with in my law practice, and about other legal issues that interest me. In doing so, I hope that I help others learn more about law, and that I encourage discussion about law and law reform. I hope that, in some small way, I help nurture the rule of law. You may contact me at my office at #201 - 401 Glenmore Rd., Kelowna, B.C., Canada; V1V 1Z6; telephone number: (250) 762-6111; email: s.rule@sabeyrule.ca.

Blog Archive

Friday, January 13, 2006

Update from B.C. Government on its Unconstitutional Tax on Legal Fees

The Consumer Taxation Branch, of the Ministry of Small Business and Revenue has issued an information update on January 12, 2006, on the B.C. Court of Appeal's decision holding that the Social Services Tax is unconstitutional as applied to at least some legal services:

Information Update January 12, 2006

The next PST remittance date is January 16, 2006.

The Government is waiting for clarification from the Court of Appeal regarding its decision in Christie v. British Columbia, 2005 BCCA 631. Submissions are being made to the Court relating to the Form of the Order, with the final submission scheduled to be made on or before January 17, 2006. After clarification is obtained, the Government will provide Guidelines, based on the Court of Appeal decision, regarding the circumstances in which tax should and should not be collected. The Guidelines will be developed in consultation with the legal community.

In the meantime, lawyers are advised that they will not be charged penalties or interest for the failure to remit amounts that they are holding in trust pending publication of the Guidelines.

The Law Society of British Columbia has issued some very general guidance to lawyers on collecting the tax here.

I have an idea for the Government of British Columbia that would be simple, constitutional and bring some basic fairness back into our sales tax system: Abolish the Social Services Tax on all legal services.

[Since I wrote this post, the Supreme Court of Canada has released its decision holding that the sales tax on legal fees is constitutional. You can read about it here. In retrospect, I wish I had chosen a different title for this post.]

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Rule of Law web-log is intended for general educational purposes only, and you may not rely on its contents for legal advice. Please keep in mind that the laws of British Columbia are often different from the laws of other Provinces of Canada, States of the United States of America, and other countries. Furthermore, the law changes, and what was once an accurate statement of the law, may now be outdated and inaccurate. If you have a specific legal problem or issue, please consult a lawyer who is familiar with the laws of your province, state or country. Neither reading this blog, nor sending me an unsolicited email will create a solicitor and client relationship with me.